Fixed-Effect Estimation of Highly-Mobile Production Technologies

Revised from November 2006 and July 2007. We consider fixed-effect estimation of a production function where inputs and outputs vary over time, space, and cross-sectional unit. Variability in the spatial dimension allows for time-varying individual effects, without parametric assumptions on the effe...

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Bibliographic Details
Main Authors: Horrace, William Clinton, Schnier, Kurt E.
Format: Text
Language:English
Published: SURFACE at Syracuse University 2008
Subjects:
Panel data
time-varying individual effect
spatial econometrics
fisheries
agriculture
heteroskedasticity
Mathematics
Bering Sea
Online Access:https://surface.syr.edu/cpr/55
https://surface.syr.edu/context/cpr/article/1054/viewcontent/wp87.pdf
Description
Summary:Revised from November 2006 and July 2007. We consider fixed-effect estimation of a production function where inputs and outputs vary over time, space, and cross-sectional unit. Variability in the spatial dimension allows for time-varying individual effects, without parametric assumptions on the effects. Asymptotics along the spatial dimension provide consistency and normality of the marginal products. A finite-sample example is provided: a production function for bottom-trawler fishing vessels in the flatfish fisheries of the Bering Sea. We find significant spatial variability of output (catch) which we exploit in estimation of a harvesting function.

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